Old Bailey bomber Marian Price has had her release licence revoked 24 hours before the Queen begins a historic tour in Ireland.

The Northern Ireland secretary, Owen Paterson, said the 57-year-old former IRA prisoner posed a threat which had "significantly increased" in recent times.

Price, from Belfast, appeared at Derry magistrates court on Monday morning.

She was charged with encouraging support for an illegal organisation, following a dissident republican rally in Derry on Easter Sunday.

The defendant, whose name was given in court as Marion McGlinchey, was accused of addressing a meeting encouraging support for a proscribed organisation, the IRA.

A police sergeant told the court she had been at a Real IRA Easter Commemoration in Derry's city cemetery, where she held a piece of paper for a masked man who read a speech from it.

Her lawyer said she had been asked to hold it because it was a windy day and she had no idea what the speech contained.

The judge granted her bail on that charge.

However, she remains in custody after the secretary of state decided to revoke her release licence late on Sunday night.

In a statement Paterson said: "My priority is the safety of the people of Northern Ireland. The government will not hesitate to use all the powers at its disposal under the law to counter the residual terrorist threat."

Price was jailed for the IRA bombing of the Old Bailey in London in 1973 but was later freed on licence. She has become a vocal critic of Sinn Féin's peace strategy regarding it as a sell out of traditional republicanism.

She is due to reappear in court again by videolink on the 9 June.

Irish republican supporters said her arrest and those of others is an assault on free speech.

There is growing anger over Irish President Mary McAleese's decision to invite a loyalist paramilitary leader to a ceremony linked to the Queen's visit to Ireland.

Ulster Defence Association chief, Jackie McDonald, is among a number of loyalists invited to Dublin where they will attend a ceremony in honour of Irishmen killed in the first and second world wars while serving in the British armed forces.

But the son of a woman killed in a loyalist bomb said McDonald and other loyalists should instead be visiting graveyards in Northern Ireland where their victims are buried.

Peggy Whyte was 52 years old when she was killed in a bomb, thought to have been left by the loyalist Ulster Volunteer Force, at the front of her home in University Street, Belfast in April 1984.

Her son, Jude Whyte, said: "It would be far more important in terms of peace and reconciliation that they perhaps visited the graveyards and looked at the damage their organisation did," he said.

"Their casualties and victims were unarmed civilians who were no harm to anybody. Try to understand the damage that the civilian population suffered here.

"You broke a lot of hearts and you maimed and murdered a lot of people. It is time to say sorry to them."

However, Reverend Mervyn Gibson, who sits on the Loyalist Commission, defended those who had made "a significant contribution towards peace".

"There are victims on all sides and apologies wanted on both sides," he said.